Published on July 17th, 2012
Mining continues to turn small towns into property hotspots
One of the flow-on effects of the nation's resources boom has been an upswing in the home values of mining towns and tourist hotspots.
And while it is now considerably harder to buy into these markets than in previous years, there are still a number of opportunities available to savvy investors.
Elders northern NSW and Queensland state franchise manager Alan Dawson said that mining regions are still attracting buyer attention despite recent price increases.
"We are seeing continued growth in areas affected by mining, including Gladstone and Emerald," explained Mr Dawson.
But Mr Dawson believes it is also possible to feel the effects of the mining boom in other regions.
The real estate expert said that areas like Mackay – which is better known for tourism – are benefiting from the increased purchasing power that comes from those working in mining-related sectors in addition to tourist dollars.
"Mackay is a great spot at the moment – the area has strong rental returns and price growth opportunities – which is great news for investors," he said.
According to Mr Dawson, the combination of a strong mining and resources sector and increased confidence in the tourism market is helping to boost home prices along the coastline.
"[Mackay] represents a good rental market for investors – and it comes with spin offs from the mining and tourism industries," he said.
With reports from Central Queensland University showing a 48 per cent increase in rental prices and 8.2 per cent rise in home values in Gladstone alone over the last 12 months, it seems that this advice may not be too far from the truth.
At the same time, it may be too early to predict the exact rate of growth for mining and tourism hotspots in Queensland in challenging economic times.
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